Built to provide research that’s more actionable and strategically valuable, The Business Research Company’s 2026 market reports include market attractiveness analysis, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, broader supply chain intelligence, emerging startup tracking, and in-depth product insights.
#Artificial Intelligence (AI) In Utilities Operations Market Revenue Growth On Track For A 22.4% CAGR Through 2030#_x000D_
The artificial intelligence (AI) in utilities operations market has experienced substantial growth in recent years. It is projected to expand from $6.22 billion in 2025 to $7.6 billion in 2026, at a compound annual growth rate (CAGR) of 22.2%. This historical growth can be attributed to the expansion of utility digitization initiatives, the rising deployment of smart meters, the increasing need for outage reduction, the early adoption of predictive analytics in utilities, and the growth of distributed energy resources._x000D_
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The artificial intelligence (AI) in utilities operations market is projected to experience substantial growth over the coming years. Its valuation is anticipated to reach $17.05 billion in 2030 at a compound annual growth rate (CAGR) of 22.4%. This expansion during the forecast period is fueled by several factors, including heightened investments in smart grid modernization, a surging need for AI-powered energy efficiency, the increasing integration of renewable energy sources, a sharpened focus on the resilience and reliability of utility services, and the growing incorporation of edge analytics into utility operations. Key developments expected during this period involve the greater adoption of AI-based grid management systems, the increased implementation of predictive maintenance analytics, wider utilization of smart meter data intelligence, the expansion of AI-enabled forecasting for renewable integration, and a stronger emphasis on utility network resilience._x000D_
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#Artificial Intelligence (AI) In Utilities Operations Market Development Factors: What’s Supporting Demand?#_x000D_
The increasing adoption of renewable energy sources is anticipated to fuel the expansion of the artificial intelligence in utilities operations market. These sources, encompassing natural elements such as sunlight, wind, water, and biomass, are constantly renewed and harnessed for energy production. Their utilization is growing significantly to curb greenhouse gas emissions, given that they produce electricity without relying on fossil fuels, thereby assisting in the fight against climate change and air pollution. Artificial intelligence within utility operations assists renewable energy by enhancing generation optimization, forecasting demand, and streamlining grid integration. This facilitates the efficient deployment of intermittent energy forms like solar and wind, simultaneously decreasing energy waste and operational expenditures. As an illustration, in January 2024, data from the International Energy Agency, an intergovernmental body based in France, indicated that in 2023, global additions to renewable energy capacity saw a substantial increase of 50%, amounting to almost 510 gigawatts (GW). Solar PV alone accounted for approximately three-quarters of these new installations globally. Consequently, the broader incorporation of renewable energy sources is acting as a key driver for the expansion of the artificial intelligence in utilities operations market._x000D_
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#Artificial Intelligence (AI) In Utilities Operations Market Segmentation And Category Overview#_x000D_
The artificial intelligence (AI) in utilities operations market covered in this report is segmented – _x000D_
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1) By Component: Software; Hardware; Services_x000D_
2) By Deployment Mode: On-Premises; Cloud_x000D_
3) By Utility Type: Electricity; Water; Gas; Renewable Energy_x000D_
4) By Application: Energy Management; Grid Management; Asset Management; Customer Service; Predictive Maintenance; Other Applications_x000D_
5) By End User: Residential; Commercial; Industrial_x000D_
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Subsegments:_x000D_
1) By Software: Predictive Analytics; Machine Learning Platforms; Decision Support Systems; Data Visualization Tools; Energy Management Applications_x000D_
2) By Hardware: Smart Meters; Sensors; Servers; Edge Computing Devices; Communication Gateways_x000D_
3) By Services: Consulting Services; System Integration Services; Maintenance Services; Training Services; Cloud Support Services_x000D_
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#Artificial Intelligence (AI) In Utilities Operations Market Transformation Trends: What Innovations Are Driving Change?#_x000D_
Key companies operating in the artificial intelligence in utilities operations market are concentrating on developing innovative solutions, such as AI-powered network model tuning, to align digital grid models with actual conditions, improve performance, decrease operational expenses, and enhance reliability across power networks. AI-based network model tuning involves utilizing artificial intelligence to automatically update and synchronize a utility’s digital grid model with real-world scenarios, thereby increasing precision, boosting dependability, optimizing grid functionality, and minimizing operating costs and service disruptions. For instance, in November 2025, Schneider Electric SE, a France-based multinational technology company, launched the one digital grid platform to assist utilities in modernizing and reinforcing their grids through AI. The platform improves reliability, predicts and manages outages, and brings digital models into alignment with real-world situations. It also streamlines operational processes and facilitates the smooth integration of renewables and distributed energy resources without requiring replacement of existing infrastructure. This initiative is designed to create smarter, more resilient, and future-ready grids._x000D_
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#Artificial Intelligence (AI) In Utilities Operations Market Company Landscape And Competitive Strategy#_x000D_
Major companies operating in the artificial intelligence (AI) in utilities operations market are Itron Inc., Open Systems International, C3 AI Inc., SparkCognition Inc., Uplight Inc., AiDASH Inc., Uptake Technologies Inc., Anodot Inc., Mosaic Data Science, Sharper Shape Inc., Amperon Inc., Kinetica Inc., eSmart Systems, Bidgely Inc., Utilidata Inc., WeaveGrid Inc., UrbanChain Inc., One Concern Inc., Flexitricity Ltd., Buzz Solutions, and Opus One Solutions Inc. _x000D_
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#Artificial Intelligence (AI) In Utilities Operations Market Largest Region: Which Geography Holds The Highest Market Share?#_x000D_
North America was the largest region in the artificial intelligence in utilities operations market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in utilities operations market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa._x000D_
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
